In a historic development, the Federation Account Allocation Committee (FAAC) has disbursed a record N2.225 trillion as federation revenue for the month of August 2025—the highest ever allocation to Nigeria’s three tiers of government and other statutory recipients.
This unprecedented disbursement signals a major boost to the country’s fiscal capacity, with positive implications for economic stability, infrastructure development, and public sector financing.
The allocation, shared among the Federal, State, and Local Governments, reflects a significant increase in revenue performance driven by improved oil earnings, non-oil revenue collections, and effective tax administration. Analysts say this landmark figure could help ease fiscal pressure on states and local governments amid rising demands for public services and capital projects.
According to FAAC’s breakdown, the Federal Government, 36 States, and 774 Local Government Areas all received substantial shares, along with designated funds for oil-producing states, derivation revenue, and other statutory obligations.
Economic experts have lauded the development, calling it a potential game-changer for budget implementation and grassroots development. Many expect that the increased allocation will translate into accelerated infrastructure investment, salary payments, and social programs across the country.
The August 2025 FAAC disbursement not only sets a new benchmark but also underscores the Federal Government’s commitment to improving revenue generation and ensuring equitable distribution of national wealth.
